Venture Capital (VC) and Angel Investments (AI) are rapidly becoming an
investment of choice for high net worth individuals (HNWIs), as the two
investment types account for an ever-increasing percentage of HNW
portfolios globally. Economically developed countries such as the US,
the UK, Israel, Germany and France account for most of the world's VC/AI
firms. However, the number of VC/AI firms in emerging markets is
expected to increase significantly over the forecast period (2014-2018),
as a result of declining opportunities in developed markets, and the
rapid pace of economic growth in emerging markets.

Innovation in technology, newer technologies and the distribution of new
technologies are expected to garner significant investment from angel
investors and venture capitalists between 2014 and 2018. Innovation is
not expected to be limited to the information, communication and
technology (ICT) industry. Significant interest is being shown by
entrepreneurs and governments alike in developed markets in sustainable
energy startups. As a result, increasing investment is expected in
renewable energy sectors such as solar and wind power.

Key Highlights

The developed markets of Europe and North America dominate the VC/AI
landscape.

The US is the largest angel investment market in the world. The UK,
Israel, Germany and France also account for a significant number of
the world's VC/AI firms.

The VC/AI sector is expected to gather pace in high-growth economies
in Latin America, the Middle East, North Africa and Asia-Pacific.

The majority of the global VC/AI population belongs to the lower
wealth bands. While lower-tier millionaires account for 33.5% of the
global HNWI population, mid-tier millionaires account for 31.3%.

Angel investors and venture capitalists are focusing on investing in
their own industry.